The “New Normal”

The “New Normal” is what this week is about.  The clients ‘reality’ is often out of date and it is the Realtors job to change the clients ‘reality’.  This involves getting our borrower/buyer to believe in us instead of their other sources of information.  Rates have ticked up over the past 2 weeks because fears over a double-dip recession and a Greek default have calmed down.  BUT, borrowers are still reading the two week old ‘Lowest Rates of All Time’ headlines.  Our job is to help them accept the new ‘Rate Reality’ and for this we look to Uncle Sam. Mortgage rates tend to follow the 10 year Treasury bill, not exactly, but generally in terms of movement up and down.  The yield on a 10 yr. T bill has gone from 1.7%  to 2.2% -or an increase of ½% in RATE from the lowest low.  Mortgage rates have reacted in a similar upward fashion, but not as much because the Fed’s buying of mortgages is helping to keep them down.  Don’t risk your real estate transaction on incorrect reality. Buyers need to look at ANY financial website to reset their expectationsby. If you aee wanting to buy then you have already waited too long and you need to BUY NOW before it get’s worse. This week Freddie Mac’s 30 yr. fixed rate survey is back up to 4.12% with fees and assuming good credit. 
Ted Clay
Senior Loan Officer
Senior Loan Consultant
NMLSR # 217991
OK License # MLO01963
Office: 405-341-8644 x 102
Cell: 405-826-1320
Fax: 866-208-5309
tclay@wrstarkey.com
www.TedClay.comWR Starkey Mortgage, LLP NMLSR # 2146
10 E. Campbell
Edmond, OK 73034